What is the coupon rate of a 8-year, $10000 bond with coupons paid semiannually and a...

Question

Question

What is the coupon rate of a 8-year, $10000 bond with coupons paid semiannually and a price of $8900, if it has a yield to maturity of 6%?

Answer 1

Answer #1

Coupon rate is 4.25%

Step-1:Calculation of annual coupon payment

Annual coupon payment	=PMT(rate,nper,pv,fv)*2
	= $ 424.86


Where,
rate	=	3%
nper	=	16
pv	=	$ -8,900.00
fv	=	$ 10,000.00

Step-2:Calculation of coupon rate

Coupon rate	=	Annual coupon	/	Par Value
	=	$ 424.86	/	$ 10,000.00
	=	4.25%

Answer 2

Answer #2

wrong. idiot.

Answer 3

Answer #3

infration is the answer

Answer 4

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